City Managers

The Compton mayor's allegations of fraud at City Hall have at least temporarily killed the cash-strapped city's ability to get a line of credit to pay bills and prompted the resignation this week of the interim city manager. The city, which owes millions of dollars to the Los Angeles County Sheriff's Department, among other debts, had been trying to get a line of credit to help deal with a $41-million deficit. Mayor Eric Perrodin had sent a letter to State Controller John Chiang in December, asking him to do a forensic audit of the city and suggesting that the general fund deficit was caused by "possible fraud, waste and abuse.

Amid financial turmoil and changing political tides, the Compton City Council has voted to fire its third city manager in five years. The council voted 3 to 2 late Tuesday to terminate City Manager Willie Norfleet, effective immediately. Norfleet had worked for the city for about four years and served as city controller until his predecessor, Charles Evans, was fired last fall. Norfleet came under fire over revelations in the spring that the city was running a $25-million deficit in its general fund and over his handling of deep budget cuts and mass layoffs intended to get the city's finances stabilized.

When Bell's all-new five-member City Council was sworn in four months ago, the members vowed a complete overhaul of the city: New leadership. New start. But the council is having little luck. After a monthlong search, officials have not received a single application from a candidate to lead the city. Besides city manager, other top leadership positions also remain vacant, including police chief and planning director. For months, Bell could not find an accounting firm that was willing to audits its books until the state controller stepped in and encouraged a firm to do the work.

A first-of-its-kind report by the Orange County Grand Jury questioned whether top officials in three upscale cities — Laguna Hills, Newport Beach and Laguna Beach — are paid too much. The report was commissioned in the wake of questions over city employee compensation fueled by last year's salary scandal in Bell, where top officials were earning salaries as high as $787,000. The grand jury found no salaries in the 34 cities surveyed that the panel considered "abusive. " The three cities were called out because they appeared to be paying out more than most Orange County cities.

It's no accident that they're on top Although the Cleveland Indians went into the weekend having lost six of their last nine games, they still have the best record and largest division lead in the major leagues. And Kansas City Manager Ned Yost says it's time people start taking the Indians seriously. "Cleveland's got a heck of a team," he said. "You don't get this far into the season [in first place] unless you've got a real balanced team. " Take a deeper look at Cleveland's 12-game improvement from this point last season and you'll see Yost is right.

The small town of Maywood drew national attention last year when it disbanded the Police Department, laid off virtually all its workers and outsourced City Hall operations to neighboring Bell. But nearly a year later, an experiment hailed by some as an act of municipal genius is considered by many residents to be a huge blunder. Just weeks after Bell took over government operations, the city was embroiled in a salary scandal. Corruption charges were filed against Angela Spaccia, the Bell assistant city administrator brought in to run Maywood, along with several other officials.

Faced with possible insolvency, city leaders in Montebello have approved a six-month contract with a real estate consultant to help the city climb out of its financial mess. The council voted 4 to 1 Wednesday night to contract with Larry Kosmont at $25,000 a month to serve as Montebello's interim city administrator. Under the agreement, Kosmont and a consultant with his firm, David Biggs, will share the duties of top administrator of the city and redevelopment agency. Council members praised Kosmont's experience and connections in the world of development and finance.

Montebello faces possible insolvency in the coming months if it cannot close a gaping budget deficit and has consulted with bankruptcy attorneys to weigh available options, according to a memo obtained by The Times. The memo, written last week to the City Council by Montebello's departing city manager, also said the city could face the potential of "bond default or other difficulties" if it does not repay the $17 million it borrowed from its redevelopment agency by June 30. Additionally, the city is struggling with cash flow.

The city of Montebello, already facing the prospect that it may not be able to pay its bills by the end of this year, sank deeper into crisis Tuesday after the interim city manager abruptly resigned. Peter Cosentini sent council members a letter informing them that he was stepping down because he was "no longer comfortable with our progress toward a balanced budget. " He suggested that council members hire a city manager "more in tune with your approach to municipal finance. " The move comes two weeks after Cosentini, who had been employed by the city for less than a year, warned council members that they needed to take "immediate corrective action" or the city would not be able to make payroll or pay its bills by the end of the year.

In a move to stave off rising pension costs and save money for capital improvement projects, Newport Beach officials may lay off 25 workers and eliminate 30 vacant positions. City Manager Dave Kiff proposed cuts Thursday that would reshape the Municipal Operations Department, which maintains streets, parks, beaches and other public areas. Some lifeguards could be demoted to part-time. "I'm trying to prepare the organization for the increase in [pension] costs and do it in a thoughtful way," he said.